45% of Families Have Credit Card Debt. Things to Do If You're One of Them

No one loves having debt, but credit card debt can be particularly tough to deal with. Interest rates are high, even for those with good credit, and once you fall into that cycle, it can be tough to get out again.

If you have credit card debt, you should know you're not alone. More than 45% of families have some, according to the Federal Reserve's latest Survey of Consumer Finances, with a median balance of $2,700. But there are steps you can take to get yourself out of debt. Here are three ideas to get you started

1. Try the debt avalanche method

The debt avalanche method is a strategy that involves paying the minimum balance on all your credit cards each month and then putting any extra cash you have toward the card with the highest interest rate. Once that's paid off, you move to the card with the next-highest interest rate, and so on until you're debt-free.

This approach doesn't require you to apply for new loans or credit cards, and it minimizes how much you pay in interest over time. But it might be challenging for those without much extra cash each month.

It might also be difficult to feel like you're making progress with this approach, especially if you have large balances on your cards. In that case, the debt snowball method might work better. It's almost identical to the debt avalanche method, except you pay off the card with the smallest balance first before moving onto the card with the next-smallest balance. The idea here is that you'll be able to see the progress you're making more easily, though you may pay more in interest overall this way.

2. Open a balance transfer card

A balance transfer credit card has a 0% introductory annual percentage rate (APR) for anywhere from a few months to a year or more. During this time, your balance won't accumulate interest, so your payments go toward reducing your principal balance. This can get you out of debt more quickly than using a credit card with no 0% introductory APR.

But there are a few things to keep in mind. First, you must open a balance transfer card with an issuer you don't already work with. If you already owe a card issuer, it has no incentive to give you a 0% APR period. Also, there's usually a fee associated with balance transfers that could increase the amount you owe slightly.

You also have to consider what the card's standard APR is if you don't think you'll be able to pay back the full balance before the introductory APR period is up. Once this ends, any remaining balance will accrue interest at this standard rate.

3. Take out a personal loan

A personal loan gives you a predictable monthly payment, which eliminates concerns about your balance ballooning over time due to interest charges. As long as you make your payments, you won't have to worry about your debt growing over time. You also don't need collateral for these types of loans, and it's often possible to get them even if your credit isn't great.

But they still have above-average interest rates, particularly for those with fair or poor credit. And the monthly payments are probably going to be a lot higher than the minimum monthly payments on your credit cards.

You could also try a combination of these approaches. For example, you might use a balance transfer card until the 0% APR period is over and then take out a personal loan for the remaining balance. Think about which strategy you're most comfortable with and then give it a shot. If you find it's not working out for you, you can always try one of the other options mentioned here.